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I am excited to share with you the general availability of Project Manufacturing Management and Optimization (PMMO) in SAP S/4HANA 2022 release. In this blog post I would like to provide you an overview of the key highlights and capabilities of PMMO in 2022 release.

SAP Project Manufacturing Management and Optimization helps achieve greater efficiency with project manufacturing in an Engineer to Order (ETO) environment to deliver complex end products (for example: military aircrafts, ships and submarines, complex industrial machinery etc.), that often involves complex engineering and production processes.

Roadmap Journey

SAP Project Manufacturing Management and Optimization includes core capabilities for grouped non-valuated project stock. With the 2021 release, several key innovations were delivered creating a foundation for customers and partners to adopt PMMO. The 2022 release brings further exciting innovations in PMMO that I am excited to share.

Key Highlights in the 2022 release

Key capabilities have been enhanced with every release to help our customers and partners fully benefit from the latest innovations. Let’s dive into the key highlights and new features within Project Manufacturing Management and Optimization in SAP S/4HANA 2022.

Pegging Assignment History

With the 2022 release, you can decide if you want to keep the Pegging Assignment history. With a simple configuration setting, you can decide whether the assignment history will be saved so that you have a complete history of the pegging assignment changes from the time you activate the setting. You can precisely see assignment changes between pegging runs, including new assignments, deleted assignments and changed assignments. With the new Fiori app "Pegging Assignment History (Fiori App ID F6620)", you can query the pegging assignments for any given selection criteria at a given point in time.

The assignment history concept in PMMO leverages the HANA warm store to keep the deleted and changed assignments. This eliminates the need to store the complete assignment data snapshot and frees up the main hot memory. The historical data is only loaded into the hot memory when needed and managed automatically by HANA to move it back to the warm store.

Actual Cost Rollup

Unlike valuated project stock, with non-valuated grouped project stock costs do not flow to the next higher assembly during goods issue. For example, if a raw material that is account assigned to a grouping WBS element is issued to the next higher production order that is also account assigned to a grouping WBS element, there is no accounting document posted in the case of non-valuated project stock. Therefore, finding true actual cost for a given material including all component costs is not easily possible unlike standard costs. With the new Fiori App "Actual Cost Rollup (Fiori App ID F6378)", you can now find the true actual rolled up cost and activity hours for a given production order or purchase order item (including subcontracting PO and stock transport order PO) that is account assigned to an operative WBS element or a grouping WBS element. Further, the actual cost rollup also provides the visibility into plant stock components along with the issued quantity and the associated costs that rollup to the entered order.

In the screenshot above, note that the material SOCKET is a plant stock component that is issued to the order 1927889 for a quantity of 2 PC with a standard cost of 10 EUR each, resulting in 20 EUR rolled up to the entered production order 1927888.

This Fiori app can help estimate costs for manufacturing a similar material or in the case of a stock gain, you can use this app to determine costs from a completed order for the same material.

For more information regarding non-valuated project stock, check my other blog post.

Pegging and Distribution Header

Pegging and Distribution are typically executed as a batch process. With the 2022 release, you can now easily query for pegging and distribution jobs that were executed in update mode, including the date time when the report was executed, the user who executed, the runtime (in seconds) it took, the count of warning, error, info, success and termination messages, run profile, generated variant (that has the selection parameters saved) and job name. For Pegging runs, additional attributes like the source of assignment header (for example: pegging update run, Migration), count of new assignments, changed assignments, deleted assignments, flag indicating if assignment history was active are displayed. Navigational links are provided for the counts to quickly jump to the details, so that you can identify the changed, newly created and deleted pegging assignments.

Fiori Apps

With the 2022 release, PMMO now has the following Fiori apps available:

  • F6378: Actual Cost Rollup

  • F6377: Current Pegging Assignments

  • F6620: Pegging Assignment History

  • F5486: Pegging Assignments with Costs

With the Current Pegging Assignments app, you can now display the Pegging Assignments based on one or more selection criteria like stock ownership group WBS element, replenishment element, account assigned WBS element, top requirement etc. If you need to display the pegging assignments as of a point in time, then you can use Pegging Assignment History app. With Pegging Assignments with Costs Fiori app, you get a combined view of Pegging Assignments along with the costs.

Below is a screenshot from the Current Pegging Assignments Fiori app.

Manual Change of Pegging Assignments

In exceptional cases, pegging assignments need to be manually changed. With the 2022 release, we have a new transaction to allow changing pegging assignments manually including the ability to create new assignments, delete or change existing assignments. A pre-condition is that the Assignment History configuration is active, since any manual changes are recorded in the Pegging Header along with the user who made the manual change. One common scenario for the need to change pegging assignments manually is when excess is assigned to default WBS, instead of an operative WBS during the pegging run. If this is not corrected, the copy history exception method would not have historical excess assignments to copy from. Manually changing the pegging assignments would ensure that the historical excess is available during the next pegging run.

Prevent distribution posting to closed WBS

The Distribution report in PMMO now has an additional selection parameter that allows you to specify WBS or Network Activity statuses to which distribution cost postings are prevented. This can be user status or system status or a combination of both. For example, you might want to prevent PMMO Distribution from distributing actual costs to operative WBSs that are closed. This feature allows you to specify one or more statuses that should be checked for the target WBS or Network Activity so that costs don't get distributed from the Group WBS.


SAP Note 3222363 lists the restrictions using Project Manufacturing Management and Optimization in the SAP S/4HANA 2022 release. There are more innovations to come with Project Manufacturing Management and Optimization. I encourage you to check out the features and share your thoughts and comments. You can expect to see soon separate blog posts on the new 2022 PMMO features in more detail. Thanks for reading and stay tuned!